State Treasurer Michael Fitzgerald is recognizing the fourth anniversary of Iowa’s Achieving a Better Life Experience program, IAble. “This is larger than a celebration for the plan,” Fitzgerald said. “It’s a celebration of a financial step in the right direction for individuals with disabilities. With IAble, they can maintain essential benefits while also saving money – which was once difficult to do.”
IAble allows individuals with disabilities and their loved ones to save money while protecting federal benefits such as Supplemental Security Income (SSI) and Medicaid. Prior to IAble, individuals with disabilities risked the loss of these benefits if they saved more than $2,000. Now they can save with IAble and protect their funds from the benefit resource limits. Account owners can use their funds to pay for qualified disability-related expenses such as food, housing, transportation, assistive technology and more.*
“We know maintaining benefits is one of the most important aspects of IAble,” continued Fitzgerald. “However, there are also tax advantages for account owners and their family and friends.” Any Iowa taxpayer can deduct up to $3,474 in contributions to an IAble account from their 2021 adjusted gross income.** Plus, earnings on investments are federally tax-deferred and tax-free if used for qualified disability-related expenses.
The program has grown to hold over $8.3 million in assets across 979 accounts. For more information about IAble, visit IAble.gov or call (888) 609-8910. Keep up with all of the Treasurer’s programs on Facebook and Twitter.
*Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as applicable state and local income taxes. The Federal Annual Contribution Limit is $15,000. However, IAble account owners who earn income may contribute additional funds beyond the annual contribution limit.
**If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.